Citation

Varshavsky, Alexander (2008). Basic income and increasing income inequality in Russia.

Abstract

It is shown that the average wages in Russia are undervalued approximately by 2 times. The level of income inequality is significant, and it is growing. Minimum wage is by 1.5 times less than the level of basic income in Alaska (by official exchange course), and the pensions are small. The developed by author method and models show that decreasing income inequality may lead to noticeable increasing the macroeconomic multiplier and economic growth, and at the same time societies with very low level of the income inequality can be unstable. They confirm also that the basic income equal to the present minimum wage could provide a key part of the answer to the inequality reduction. Obviously, considering the problems connected with introduction of basic income is the necessary step for development civil society in Russia and will positively influence on resolving the important for the Russian future problems.

URL

http://www.basicincome.org/bien/papers.html#2008

Reference Type

Conference Paper

Year Published

2008

Author(s)

Varshavsky, Alexander